Twitter’s Stock Hits New Low After User Growth Fails to Impress

Twitter stemmed four straight quarters of slowing user growth, but it wasn’t enough to prevent its stock from sliding to a new low.

The company’s stock has fallen about 8% to $39.13, a new low. This despite Twitter more than doubling its revenue to $250.5 million during the first quarter and beating analysts’ loss estimates.

Twitter said it added 14 million monthly active users, up 5.8% to 255 million from three months earlier. That is better than the weak 3.8% growth reported in the previous three months, but it didn’t exactly impress some analysts.

Ken Sena, an analyst at Evercore, forecast Twitter’s user base would grow to about 257 million monthly active users, or 6.6% sequential growth.

“The user growth showed some continued deceleration,” Sena said. “It just happens to be the one thing that investors are looking at.”

In recent months Twitter has rolled out a raft of new features in recent months to make its service more appealing to the average user. Just one in five people in the U.S. with an Internet connection user Twitter regularly, compared with more than half of the U.S. online population on Facebook.

Another key metric for Twitter is “timeline views,” designed for advertisers to gauge usage–every time a user refreshes their Twitter page on a desktop or mobile device. After falling the past two quarters year-over year, timeline views in the first quarter rose 15% to 157 billion.

Twitter continues to draw more ad revenue from its users, reporting $1.44 in the first quarter, nearly doubling from a year ago.